The Number of Quarters Needed to Double an Investment When $\mathrm { n } = \log _ { 1.025 } 2$

question 99

Multiple Choice

The number of quarters needed to double an investment when a lump sum is invested at 10%, compounded quarterly, is given b $\mathrm { n } = \log _ { 1.025 } 2$ In how many years will the investment double, to the nearest tenth of a
Year?

• A) 28.1 years
• B) 3.5 years
• C) 7.0 years
• D) 14.0 years

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Definitions:

Geometric Sequence

A sequence in which each number following the first is generated by multiplying the former number by a fixed, nonzero factor, this factor is identified as the common ratio.

Partial Sum

The sum of a portion of a sequence of terms, or a method of summing certain numbers by grouping.

N Th

Referring to an unspecified member of a series or set.

Increasing Annuity

An annuity payment plan where the payment amounts increase over time.